It doesn't look like the sketchy success of Internet stocks and IPOs has scared off many venture capitalists: new data shows more dollars are flowing into Net startups than ever before.
During the first half of this year, 565 Net startups received a record $US6.3 billion - more than the $5.7 billion raised during the entire year of 1998, and more than 1997 and 1996 combined, according to San Francisco-based venture-capital researcher VentureOne.
In the second quarter of this year alone, Internet venture funding jumped 53 per cent from the $2.5 billion raised in the first quarter to $3.8 billion, a 170 per cent increase over the year-ago second quarter.
According to VentureOne, Internet firms are increasingly dominating the growing pool of US venture funds. During 1995, a total of $6.3 billion was invested into US startups, and Net firms garnered 15 per cent of the total.